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Implications of extending more liberal credit terms to customers?
Wiki User
∙ 13y ago
implications of extending more liberalcredit terms to customersspecially consider the actual cost of retaining customers when all that many
... and compare this with the huge costs of acquiring a new customer. ....
Management; Employees; Existing customers; Potential customers ... Dealing with
emotional people, and solving problems with significant emotional implications,
Wiki User
∙ 13y ago
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What is liberal credit?
A liberal credit policy implies your organization stretches out great terms to purchasers who make buys on records or through transient financing. Offering rebates for early installments or permitting extensive reimbursement periods with no punishment are cases of liberal credit terms. Having a liberal policy may draw in new customers and more business, however it can likewise affect your income.
What is liberal credit policy?
A liberal credit policy implies your organization stretches out great terms to purchasers who make buys on records or through transient financing. Offering rebates for early installments or permitting extensive reimbursement periods with no punishment are cases of liberal credit terms. Having a liberal policy may draw in new customers and more business, however it can likewise affect your income.
What is credit in business?
Credit means extending periodic payment against sales by the seller to a buyer/customer. In business, you cannot always expect cash and you are to extend credit to your customers to remain in business. In the broader sense, banks extend various types of credit to business houses to meet up their multipurpose requirements.
What are three types of credit?
1 Liberal on credit/conservative(tight) on collections 2 Moderate on credit/moderate on collections 3 Conservative(tight) on credit/liberal on collections
What are the risk-return tradeoffs associated with a more liberal credit policy?
A liberal credit policy may attract people who don't have enough money to make their payments. With a liberal credit policy, a business will have to have a strict collection department.
What are the implications of extending more liberal credit terms to customers?
By extending more liberal credit terms to customers, your turnover will multiply along with the risk of delayed/non-payment which you to acomodate.
Liberal credit policy?
What are implications of extending more liberal credit terms to customers? Name two companies that had capital management problems and cash inflow difficulties.
What does credit management mean?
Credit management is the process of deciding which customers to extend credit to and evaluating those customers' creditworthiness over time. It involves setting credit limits for customers, monitoring customer payments and collections, and assessing the risks associated with extending credit to customers.
What is liberal credit?
A liberal credit policy implies your organization stretches out great terms to purchasers who make buys on records or through transient financing. Offering rebates for early installments or permitting extensive reimbursement periods with no punishment are cases of liberal credit terms. Having a liberal policy may draw in new customers and more business, however it can likewise affect your income.
What is liberal credit policy?
A liberal credit policy implies your organization stretches out great terms to purchasers who make buys on records or through transient financing. Offering rebates for early installments or permitting extensive reimbursement periods with no punishment are cases of liberal credit terms. Having a liberal policy may draw in new customers and more business, however it can likewise affect your income.
What is credit in business?
Credit means extending periodic payment against sales by the seller to a buyer/customer. In business, you cannot always expect cash and you are to extend credit to your customers to remain in business. In the broader sense, banks extend various types of credit to business houses to meet up their multipurpose requirements.
What are three types of credit?
1 Liberal on credit/conservative(tight) on collections 2 Moderate on credit/moderate on collections 3 Conservative(tight) on credit/liberal on collections
What is optimal credit policy?
Optimal credit policy involves finding the right balance between extending credit to attract customers and minimizing the risk of non-payment. It includes setting credit limits based on customer creditworthiness, monitoring outstanding balances, and implementing effective collections procedures. The goal is to increase sales while managing credit risk effectively.
What are the risk-return tradeoffs associated with a more liberal credit policy?
A liberal credit policy may attract people who don't have enough money to make their payments. With a liberal credit policy, a business will have to have a strict collection department.
What would be the implications of receiving a default notice on your credit card?
There are many implications of receiving a default notice on your credit card. These may include having to go to court or possibly even declaring bankruptcy.
If your cosigner's credit is good but yours is not so good will you be denied an apartment?
The company extending the credit is the judge of that. they have guidelines to determine who that extend credit to.
Credit Unions are better than banks because credit union are more tailored to their customers.?
Credit Unions are better than banks because credit union are more tailored to their customers.
